India’s vision of “maritime security” through cooperation and development of port led infrastructure.

We have now been reading and understanding about the impact of climate change and how in the maritime domain it is emerging as a threat. In the follow up of the previous article on “maritime security” we shall now look at one of the key aspects that has been going on to build a resilient maritime trade. The key aspect is ports, which needs constant evolution in meeting demands and emerging challenges at sea and coast. The ports act as a significant “mode” of transport to sustain economies of the globe and requires constant process of building and retaining most economical shipping routes. To understand the significance of ports we need to first understand importance of ports.

The ports act as a “gateway” for global trade across the continents.

For example, crude oil is shipped from Russia to India and China or any nation in middle east to the global distinct locations, majority is carried through the sea route. Therefore, ports act as an anchoring point for the transportation of goods. Another significant and recent example is food grain export through Bosphorous strait by Ukraine. The export cycle in Ukraine faced a challenge at the time of conflict and led to an agreement called as Black Sea Grain initiative in July 2022. The agreement allowed to export food and fertilizer via three Ukrainian Black Sea ports.? These are some of the significant scenarios in maritime trade which involves ports. ?

Subsequently these ports globally are also challenged by impact of climate change in form of sea level rise, drying of rivers or flooding and therefore requires modification or modernisation. For example, recently the Amazon River reached its lowest level in over a century due to a severe draught. The result was unfeasibility of maritime operations at the Brazilian port of Manaus. Similar challenge was and being faced across Panama Canal. ? As understood with an example of climate change and evolution of maritime trade, we can now highlight about the Northern Sea Route here which would realign the traditional sea route and open up new geographical passages for the global maritime trade. The climate change in form of melting ice and higher ice-free days in the Arctic would allow “sporulation” of more economical trade route.

So, will the climate change modify India’s position which currently sits at the heart of the trade route and will she be able to maintain its “lighthouse” image in the region? The question answer would be deliberated in the article.

The shipping trade and the challenges associated with it are not new and are an ever-evolving process. India which has been substantiated as “lighthouse” in previous articles is also progressing correctly by building resilient port infrastructure.? The importance of India in acting as a “lighthouse” in the region can be understood by the fact that even Japan academics find India as the crucial link between West and the Global South. Such discourse was projected during the recent concluded G-20 under India’s Presidency. It’s even the countries in the West who acknowledges India’s reliable capacity and capabilities in the region. Former United States Assistant COMMERCE SECRETARY Arun Kumar was quoted saying “India will play an important role in trade realignment globally”. It’s not just the mere “statements” but India’s involvement in projected economic corridor to promote trade globally. For example, the recently launched India-Middle East-Europe economic corridor involving Saudi Arabia, India, United States and European Union is a prime example or the proposed development of rail and port infrastructure linking Gulf and South Asia involving United States, Saudi Arabia and India. India has therefore become a major stakeholder in major parts of global multimodal infrastructure projects. Therefore, it is apt to ask the question.

Does India have a vision for aligning global trade or it’s just a mere perception?

?To answer this question, we need to first understand India’s current position as a “stakeholder” in the Indian Ocean Region (IOR) and globally. Maritime trade in India is not new and is being carried out through ancient times. Therefore, India is leading by example by cooperating with various countries in the maritime sector. India’s reliability in the region can be understood by the fact that the Ministry of Ports ,Shipping and Waterways. Government of India , Shri Sarbananda Sonowal was quoted saying “India has already entered bilateral agreement & Memorandum of Understandings (MoUs) with 34 countries on maritime transport & cooperation and signed MoUs on recognition of certificates of seafarers with 40 countries” at a recent concluded meeting before the Global Maritime India Summit (GMIS). The GMIS which is a premier maritime sector focussed event to bring together pivotal figures from the industry to explore opportunities, understand challenges, and stimulate investment within India's maritime sector.

To elaborate India’s significance, let’s look at recent few events that show that India is acting as a “lighthouse” in maritime security from ports and maritime transport perspective in the region. ?Recently, India inaugurated the Far East India Express (FIX1) service establishing a direct container shipping route between India and China. The service covers Port Of Qingdao Ports Qingdao, Shanghai, Ningbo, and Shekou in China, Chennai and Vizag ports in India and Port Kelang in Malaysia. The service has enhanced supply chain efficiency by reducing transit time by eight days. Regionally, India has been assisting its neighbouring Island nation Government of Sri Lanka in building port terminal projects. Currently, Government of India Official in collaboration with United States is developing Colombo Port City Economic Commission Colombo port terminal project with a funding of US$ 553 million.? In the IOR, India and Government of Kenya recently made a joint vision statement of development in maritime security of IOR through deeper cooperation. Under the deepening of cooperation, both the nations committed to enhance security especially on the eastern coast of Africa by focussing on capacity building and collaboration in ship design and construction. The MoU was signed and formalised between?Goa Shipyard Limited?and?Kenya Shipyards Limited?in the presence of India’s Ministry of Defence of India Defence minister Rajnath Singh?and Government of Kenya Cabinet Secretariat for Defence?Aden Bare Duale?during their talks in New Delhi, India. If we see globally, India’s Tata Steel and Government of the United Kingdom has agreed to invest 1.25 billion pounds in Port Talbot site. The investment is done by Government of the United Kingdom and the objective is to develop green-technology based industrial ecosystem in the port area. Further the objective of the investment is to restructure balance sheet and promote investment. Therefore, on similar lines India should also invest substantially in creating multimodal infrastructure regionally to promote and protect trade, the emphasis was given by Shantanu Bhadkamkar , Immediate Past President of the Association of Multimodal Transport Operators of India (AMTOI) .

And developing ports is one of the critical elements of this multimodal infrastructure.

?India’s recent port led development

The Government of India (GoI) is working holistically in the maritime sector, whether it is India’s Act East Policy, PM Gati Shakti National Master Plan or developing green ports, the investments are being made to develop a resilient port infrastructure as one of the “key focal points”. ?India is steadily developing its efforts under the Green Shipping National Action Plan for Green Shipping. The vision develops around promoting eco-friendly practices and providing incentives for low-emission ships. India is making steady gains in the shipping sector by doubling major ports capacity, substantial waterways growth, increasing cruise passengers and seafarers, expanding solar power and lighthouse tourism to name a few. Further efforts to create green ports in India are being developed rapidly. Recently, R.Sreenivas senior advisor Rear Admiral of Hindustan Shipyard Limited - India said in a release by Super Computing Consortium of India that “green ports would be leading the maritime sector”, he also elaborated on the steps being taken to develop green ports by Hindustan Shipyard Limited , Visakhapatnam. Besides the port development the DARPG, Government of India is planning to enhance its standard container manufacturing through production-linked incentive schemes. For promoting port related infrastructure, we can pin two recent events. First is the signing of MoU between Inland Waterways Authority Of India (IWAI) and Numaligarh Refinery Limited for export of petroleum products and the second and a great milestone is anchoring of INR 10 Lakh crores of investment in line with its Maritime Amrit Kaal Vision 2047 during GMIS. GMIS has triggered a cycle of investment in various ports across the nation.

We would now see key recent investments being initiated across various ports in the nation.

Gujarat

Gujarat has recently witnessed one of the best development plans to streamline operations and minimise risks in its non-major ports in form of a master plan by Gujarat Maritime Board that has been prepared up to the year 2047. Consequently, a major port in India and located in Gujarat, Kandla Port Hazra Kandla Port operated by Deendayal Port Authority (Erstwhile Kandla Port Trust) has signed a concession agreement with an investment of INR 4200 crores. The agreement is under Public Private partnership (PPP) model and features a 1100 metre berth capable of handling next generation vessels that can carry more than 18000 containers. The investment would increase the terminal annual capacity to more than 2 million twenty-foot equivalent units (TEU). In addition, Kandla Port has also been selected as one of the ports for the development of green hydrogen, green ammonia and green methanol under the National Green Hydrogen Mission.? Another port in Gujarat and one of the world’s largest ports, Mundra Port & SEZ Ltd recently celebrated 25 years of its establishment. The port handles 33% of India’s container traffic flows and handled 11% of India’s maritime cargo in the financial year 2023.[i]

Maharashtra

JNPA- Jawaharlal Nehru Port Authority in a joint venture with Maharashtra Maritime Board, Mumbai is developing a greenfield port at Vadhavan in Palghar, Maharashtra. The port with an investment of INR 76000 crore and a potential to handle 15 million TEU containers in its first phase has been granted “in-principal” approval for setting up as a major port under Sagarmala programme. The port has a natural draft of 20 meters depth at a distance of five km and have been granted a non-objection certificate from Dhanu Taluka Environment Protection Authority

Karnataka

New Mangalore Port Authority (NMP), only major port in Karnataka inked deals worth INR 8347 crore at GMIS through signing and exchanging of seven MoUs. The MoUs would provide expansion of port and its associated infrastructure in form of port-led industrialisation. The MoUs would involve developing desalination plant, integrated LPG and bulk liquid POL storage facility, tank farms and storage infrastructure. In addition, New Mangalore Port Authority recently received first foreign vessel port call from a Bahamas flagged luxury cruise liner Regent Seven Seas Cruises “Seven Seas Navigator”.

Kerala

The Government of Kerala on similar lines has decided to develop the assets of port department under PPP model. Valiathura pier, Vizhinjam International Seaport Limited Vizhinjam port-a deep-water international port and one of the largest ports in the world once commissioned are being built under PPP model. Another port in the state under the Cochin Port Authority Cochin Port Trust , VALLARPADAM LOGISTICS PRIVATE LIMITED Vallarpadam received an investment to develop first Freetrade Warehousing Warehousing Zone in Kerala and the first one to be co-located alongside a container terminal in the country. In another recent instance, Udupi Cochin Shipyard Limited , the wholly owned subsidiary of Cochin Shipyard Limited , has won an international order from Norway-based WILSON SHIPOWNING III LTD Shanghai Wilson Shipping Service Co., Ltd owning Advanced Shipping for the design and construction of six new generation diesel-electric 3800 Dead Weight Tonnage general cargo vessels. The contract is signed with an option for additional eight vessels. On the development of associated port infrastructure to boost circular economy fort kochi beachfront recently got renovated with an investment of INR 1.69 crores. Kuzhupilly beach in Ernakulum recently got its first floating bridge.

Tamil Nadu

The chennai port trust Chennai Port Authority signed MoUs worth INR 74000 crores at the GMIS. The investment was to boost development in the port’s hinterland. Another port in the state, Kamarajar Port Limited formalised MoUs valued at INR 1920 crores at the GMIS. In addition, the Kamarajar Port Limited Kamrajar Port is expanding its LNG import, storage, and regasification terminal project to provide clean energy. The expansion is being supported by IndianOil - Adani Gas Pvt. Ltd. IndianOil Adani Ventures Limited Indian Oil Corp Limited IndianOil LNG Private Limited, a joint venture company of Indian Oil Corporation , by investing Rs34bn ($408.39m).

Andhra Pradesh

Andhra Pradesh has the second longest coastline in the country and has witnessed one of the key development’s initiatives recently. To begin with Visakhapatnam Port Authority signed 16 MoUs worth INR 2718 crores at the GMIS. The target was to foster port-led industrialisation, development and modernisation, community development, and training programmes. In another incidence and to boost cruise tourism VIZAG INTERNATIONAL PRIVATE LIMITED Vizag International cruise terminal in Vishakhapatnam got inaugurated. On the occasion of the inauguration of the cruise terminal the Union Minister of Ministry of Ports ,Shipping and Waterways. Government of India , Shri Sarbananda Sonowal was quoted saying that “India has increased its cargo movement capacity to 1681 million MT through its 12 major ports”. In his address he emphasised the potential of cruise terminals in the country and highlighted about the prospects of cruise tourism in the country. In case of port led associated infrastructure development, Andhra Pradesh became the first state on the east coast to get an ocean deck that would attract tourists and people for recreational activities. In doing so Visakhapatnam Port Authority Visakhapatnam Port Authority Chairman Dr. M. Angamuthu recently announced the development of maritime heritage complex, port waterfront area, and a walkway to promote recreational activities among the “sea-lovers”.? In a different location, Ramayapatnam Port is being developed and recently saw entry of first ship to test operational feasibility.

Kolkata

Syama Prasad Mookerjee Port, Kolkata recently geared up to expand its cargo handling capacity under PPP model.

Andaman and Nicobar Islands

There have been significant gains in the development of International Container Terminal Services, Inc. International Container Transhipment Port (ICTP), at Galathea Bay, Great Nicobar Island. With a total estimated cost of about ?44,000 Crores. The project is strategically important for the country and crucial for the economic and infrastructural development of the Eastern IOR. The site has been granted environmental clearance by the Ministry of Environment, Forests & Climate Change, Government of India and “Stage 1” forest clearance. In addition, the site has been granted "in-principle" approval for the holistic development of the Great Nicobar Island by the Department of Public Expenditure NDP Delivery & Reform Department of Public Expenditure and Reform , Ministry of Finance . The site is significant in the fact that it has strategic location in terms of proximity (40 nautical miles) with the international shipping trade route, availability of natural water depth of over 20m and carrying capacity of transshipment cargo from all the ports in the proximity including Indian ports

?Challenges in developing ports in India

The development of port and its associated infrastructure is being met with challenges. In this article we shall highlight three main challenges faced in developing ports and associated infrastructure.

1. The major challenge is “port-port” challenge. For example, the development of port in close geographical vicinity would attract trade as well as divide the incoming trade leading to a stalemate position. To understand the challenge lets understand Vizhinjam International Seaport Vizhinjam International Seaport Limited Vizhinjam Logistics Pvt Ltd and Vallarpadam Basilica Vallarpadam terminal.? Both these terminals are approximately 200 km apart. The question is being raised that “Will the ports development compliment each other or it would divide the trade?”
2. The next significant challenge is the community aspirations. Like every development project it faces criticism and protest from the group who feel that their interests would be compromised. This leads to a series of protest and challenges for a healthy growth environment. For example, recently tension grew at VCTPL - Visakha Container Terminal Pvt. Ltd. Visakha Container Terminal Private Limited (Vctpl) in Visakhapatnam when fisherfolk staged protest to highlight their demand regarding the construction activities in the area.
3. The third and last challenge being observed is the development of cruise tourism in the country. Recently Karnataka Karnataka Fisheries Development Corporation Karnataka Veterinary Animal and Fisheries Sciences University karnataka Fisheries Vision Karnataka 2042 Fisheries and Ports Minister Mankal Vaidya said that “The state government has started the process of encouraging cruise tourism with Karwar and Mangalore being the first two ports where this will be considered”. He informed about the assessment of infrastructure cost that would be involved. However, it should be highlighted that before developing any such tourism project the community sentiments should be understood. To understand the challenge, lets see a recent data released by Reserve Bank of India (RBI) which showed that Indians spent around $ 11.44 billion on overseas travel between April 2023-January 2024, a 122 % jump from same period last year. The popular destinations among tourists were Vietnam, Dubai, and Bali. Therefore, it should be remembered here that the tourist who can spend preferred to spend on international destinations. A detailed analysis of gaps in current cruise tourism policy in India would be presented in a sperate article.

Conclusion

India’s current comprehensive fiscal policy backing is positioning India as a hub of diversified supply and value chain across the Indo-Pacific Region. The experts in the India acknowledges the transformation of transportation for transforming nation’s economy. At the same time the Government of India (GoI) is aware about the dangers of unviable debt projects that can create an economic breakdown for the neighbouring countries. The foresightedness can be seen through Ministry of External Affairs, India External Affairs Minister S Jaishankar address at the annual meeting of the 23 member Indian Ocean Rim Association held in Colombo, Sri Lanka.? Its not just the MOFPI Government of India Government Administration but the Indian Navy which has comprehensively added the perspective of climate change and other emerging challenges in modernisation of the coastal assets and ports through its Maritime Infrastructure Perspective Plan 2023-2037. The plan was revealed at Naval Commanders Conference.? With such a perspective, vision, plan, action and development activities in various regions of India it can be safely reiterated what Scientist Anand Ranganathan delivered in his lecture on “India towards 2047-A land of opportunities” at the “Jinnasa-Sanathan Chintan Ganga” lecture series on India Renaissance organised by Swachh Mangaluru Foundation in association with Mangaluru Ramakrishna Mutt and Mission.

?“India was a land of missed opportunities has now been transformed into a land of opportunities and continues to remain so”

[i] https://www.adaniports.com/newsroom/media-releases/mundra-port-celebrates-25-years-of-stellar--operations-and-unparalleled-growth